New operator joins groundnut market #gambia

Information reaching this reporter from the North Bank of the Gambia has it that a new Indian Company called Reliance Oil Mill has joined the groundnut market by pre-financing some Cooperatives Primary Marketing Societies in the area, becoming a competitor to GGC which was the sole operator in the groundnut sub-sector. According to the farmers, the new operator has no price difference with the Gambia Groundnut Corporation as far as farm-gate price is concerned. The new operator, Reliance Oil Mill, is offering D15, 250 per ton to the farmers. Mr. Sulayman Sowe of Reliance Oil Mill confirmed that his company is operating in the groundnut sub-sector as a buyer, but on a low scale. He said as far as Cooperatives Primary Marketing Societies are concerned, they are pre-financing six (6) of them and they are:-Suduwol, Kulari, Boiram,Kerr Njaga,Kwinella and Sankwia. With regards to the farm-gate price, Mr Sowe indicated that their farm-gate price is D15, 250, but added they also pay a commission of D850 plus freight cost which varies according to Zone. According to Mr Sowe in the Central River Region Zone which is from Sare Bojo to their Depot in Kanifing, they are paying a freight cost of D55 per bag to the CPMSs or private buyers who wish to sell to them. In Basse Upper River Region Zone, he said, they are paying a freight cost of D65 per bag and in the Lower River Region; they are paying a freight cost of D50 per bag. However, he said, West Coast Region is divided into two zones. From Kalagi to Bullock, he said, they are paying a freight cost of D45 per bag and from Bullock to the rest of West Coast Region; they are paying a freight cost of D50 per bag. Asked what their expectation is in this year's trade season, Mr Sowe asserted that they are thinking of withdrawing from the market due to the poor quality of the groundnut. Sowe noted that when they tested the groundnut at their factory in Kanifing, they realized an average quality of 64.5 percent and that, taking into consideration their overhead cost, with such a percentage quality, they would lose D1, 000 per ton.